The clarion., 1887-11-02

ii. e. of the trust funds in bank stock
for educational purposes) chad become
the settled policy of the State before the
Planters Bank was established or even
thought OF, ,"-is rather amusing when
we remember thai, unless the COM
pilation on page 335 of Hutchinson's
Code is erroneous, the only bank incor-
porated in the State before the Planters
Bank was the Mississippi Bank, towards
which the relation of the State was pre-
cisely the same as towards the Planters
Bank.
| said that the Senator's argument on
this head ignored one of the most con-
trolling considerations in determining
the question of the States liability for
this investment Life is too short to 90
| largely into the affairs of the Planters
Bank, but to understand this point, it is
necessary to venture little that way.
| The material facts are as follows:
The charter, granted 10th February,
| 1880. authorized three millions of stock,
REsERvING TWO MILLIONS FOR THE
STATE: the States stock lCds TO Be paid
for by the proceeds Of STATE bonds sold for
| that purpose by the bank: the State l1as
| to hare seuen Directors, and the other stock
holders sir: the loans made WERE TO BE
| ArPoRTIoNED AMONG THE DISTRICTS OF
| THE STATE. AND TUE INTEREST FIXED AT
SEVEN PER CENT; statements were to be
rendered to the Legislature when re-
uuired; and notes of the bank were to
| be received for State dues.-Hutch.
Code, %. 3ll. Its charter says-expressly
in its preamble, that II was established
for the purpose Of creating public rep-
enue.
The first $500, 900 of said bonds were
issued and sold in 1881, and the stock
taken to that amount. meeting OF
stockholders was ordered fer March,
1881, by the act of Dec. 16, 1880. BY
the act of 10Th Dec, 1881, branch at
Port Gibson was allowed branches were
allowed to discount on both real and
personal security. By the act of 9TH
February, 1888, the State surrendered
one of her directors to the other stock
holders, so that thenceforward the State
appointed six of the thirteen; further
issuance of S1.500,000 bonds of the
State, to be sold by the bank for the
purpose of paying for the remainder of
the two millions of stock, was authorlz
ed another million of stock authorized
to be issued to private stockholders,
Code, pp. 313, 3l4. By the act of ID
March, 1888, the Seminary laads were
ORDERED to be sold at auction, on one,
two, and three years time, with ten per
cent. interest on the notes; the notes
were to be on approved security, payable
to the Governor and his successors IN
Office, and payable and negotiable an the
Planters Bank; and as they fell due the
t-f-r
VEST PROCEEDS FROM TINE TO TINE IN
STOCK OF THE BANK-Hutch. Code, p.
215. The million and half of bonds
were promptly SOLD, and at a premium;
and the full two millions of State stock
(one-half of the whole) paid for. From
the 18th November, 1884, to the Sth DC
tober, 1898, the sum of 1927 $1,000 of
the Seminary Fund was invested in
stock.-House Journal, 1914, p. 446 By
the act of 18th May, 1887, the stock of
the Bank was further increased 81, $50,
OOO. 90 for the branches at Jackson and
Tchula DURING ALL THIS TINE THE
BUSINESS OF THE TREASURY WAS BEING
CONDUCTED THROUGH THE BANK. By
act of February, 1889 (after all the in
vestments above named had been made)
the State exchanged all of its stock for
an equal amount of stock In the Missls
sippi Railroad Company, and surrender
ed its State Directors in the tank; hold
ing, however, ALL the stock, both of the
State and of all private individuals in
the railroad company liable for the pay
ment of the Planters Bank bonds.
Now let us take little broader view.
The Planters Bank was not the only
concern the State tried its luck" with
In 1909, the "Bank of the Mississippi at
Natchez" was incorporated, with cap
| ital sock of $500, 100000. In 1878 sup
Elementary act was passed. changing It's
name to Bank of the State OF Mlssls-
sippi," enlarging its capital to three mil
| lions, of which one-fourth was reserve
! to the State, five directors out of six
teen reserved to the State, right OF in
spection reserved by the State, notes
receivable for State dues, AND No OTHER
| BANK ALLOWED TO BE CHARTERED
DURING IT'S CoNTINUANCE, which was
already fixed to be until the close of the
year 1884. By various acts running to
say 1929, the Literary Fund was put
into it, and bonds issued to raise money
to pay for State stock, etc., etc.
Then on 10th February, 1880, and
while the former bank was still in exist
ence, came the Planters Bank, whose
charter, etc., | have just set forth.
Then, in 1886, and while the Planters
Bank was in full blast, came the Missis
sippi Railroad Company, which was in
that year empowered to set up bank
!. ing business, and of whose stock the
State took 10000 shares, as already ex
planned.
Then, again, in 1887, came the Missis
J sippi Union Bank, with a capital oil
SIS, 500, 100000, to be raised by loan
which loan was to be negotiated on fif
teen millions of State bonds, which
were to be executed to the bank, and b.
it used for that purpose; the State wa
: to have five of the thirteen directors
) and was to have one-tenth of the profit
} of the bank, after the bank had paiC
J off all the bonds and had paid certain
5 dividends provided for in the act, etc.
0 etc. Later, the State took five million
of stock, to be paid for out of proceed.
: of the bonds.
Thus, in the brief period of les
than twenty years, the State launch
a ed itself on the uncertain sea of four o
:. these enterprises. Whether it thereb
, manifested the wisdom and conser vatisn
: lauded by the Senator in his argument
7 let the reader say. Gov. Tucker said
/, was recklessness, and Gov. Brown sal
! it was improvidence; and the people Q
= | the State, in 1876, by the first amend
q ment, sealed it in an almost unanimou
+ verdict, with the deep damnation of
q constitutional repro5ation. 1t is hare
, ly possible for the Senator to "reope
: the question:" now. With what cour
: tenance could any statesman of Missi:
f sippi stand up before our nation and a
: intelligent world, and maintain that th
n Planters Bank was of such characte
j. that it was fit and prudent to invest
II it the funds of a most sacred trust, br
y at the same time to justify or excuse th
:, repudiation of two millions of bond
: sold for hard cash, and at premium
tor the purchase of the very same ella
le of stock?
h But to return to our consideration
to the nature of the Planters Bank.
ls short reflection upon its constitution, i
m history, its management, and its circCr
10 stances will show, conclusively, that
:. was organized, mainly owned, and w
te run by the State, to accomplish boi
n fiscal and political purposes of the Stat
at And the recital of its very charter, tn
n it was established to create public re
at enue, concludes the argument. And Il
to feature of the case which the Senator
ne argument so persistently ignores is, tn
at when all is said, it remains at last b
40 the common case Of trustee mixil
of trust funds with his own, and employil
he them in his own business
ne 1t is idle to talk about the iudgme
if of the people, and the confidence of t
ey best men in all the country, etc., e
ut The State is here responsible, not on
I because of the original snuestment, b
mt also, and for tco reasons, either go
ty alone, for the management and success
Re, the bank; first, because she was trl